A company offering its service to clients by time-specified contract and non-time-specified contracts. if that service cancelled either as a result of client asking or; accumulation of that client debit balance, he is obligated to pay a commitments fees. How should the benefit from such commitment fees be recognized and when - under the following considerations: - if the client asks to cancel the service, then he pays the commitment and all debit balance, i mean no receivable generated from the cancellation. - if service cancelled as client debit balance's age exceed the age that determined by management (for example: one year) then company work on receivable collection through court with cooperation with lawyers. in other world the possibility of collection of that commitment fees is very law (only 8% are collected).
